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05.03.2012 - Voice of CA Presents - Updates
Monday, March 5, 2012


I.  A Useful Presentation: 

[Contribution by  CA Avinash Gupta, and contributor is available on Mobile No.  9810751999 / email-id: ]

TRANSFER PRICING – Introduction, Issues & Recent Developments

(Please click here for presentation)


II.  Service Tax Case laws:

1.    Amalner Co-operative Bank Ltd. Vs. Commissioner of C. EX., Nashik (CESTAT Mumbai) Final Order No. A/316/2011- WZB/C-IV(SMB), Dated: 6-7-2011 in Appeal No. ST/14/2010 (In favour of assesse)

Brief Facts of the Case:

1. On 19-9-2005, the appellant/assessee surrendered their service tax registration on the ground that the appellant are entitled for the benefit of Notification 6/2005, dated 1-3-2005 as their taxable services are below Rs. 4 lakhs.

2. Thereafter, in January 2008 a survey was conducted at the premises of the appellant wherein it was found that the appellant had wrongly availed the benefit of Notification 6/2005 and claimed exemption thereunder. Therefore, it was found that appellants are liable to pay service tax for the entire period.


7. After considering the submissions made by both sides. I find that it is not a disputed fact that on 19-9-2005, the appellant had surrendered the service tax registration by availing the benefit of the Notifications 6/2005 dated 1-3-2005. As soon as the registration certificate has been surrendered by appellant, duty is cast on the department to verify whether the appellant has rightly gone out of the ambit of service tax or not. The department has not done this exercise within one year of the surrender of the registration certificate.

8. The matter is sent back to the adjudicating authority to requantify the demand pertaining to normal period and to give the benefit of input service credit for normal period after due verification of the documents produced by the appellant in support of their claim. As extended period is not invocable, penalty under Section 78 is waived. The penalty under Section 77 is confirmed to the extent of Rs. 1000/-.

(Please click here for judgment)


2.  EM PEE Motors Ltd. Vs. Commissioner of Central Excise, Chandigarh (CESTAT Delhi), Final Order No. ST/412/2011(PB), dated 26-8-2011 in Appeal No. ST/665/2007 (In favour of Revenue)

Brief fact of the case:

1.  The appellant/assessee provided services of Authorized Service Station and Business Auxiliary Services. They had acted as agent for promoting vehicle loans for which the Bank paid them commission. Out of the commission paid by the Bank, they were in fact paying some amount to the loan seekers as an incentive for taking the loan through them. While paying service tax for amounts received as commission, the appellant deducted the amounts paid to customers from the amount received from the bank and paid service tax only on the remaining portion of the commission.

2.  The Revenue made out a case that they should have paid tax on the full amount received from the bank and issued a show cause notice to the appellant demanding tax which was short paid.


5. We are of the view that the amount paid by the bank for the services rendered by the appellant and reflected as receipts in the books of accounts of the appellant, should be subjected to service tax and therefore, the orders passed by the lower authorities is maintainable and thus appeal filed by the appellant is rejected.

(Please click here for judgment)


IV.  Today's Topline News : 
  1. Stage Set for Introduction of Cash Transfers  (Click for detail)

  2. Tax exemption to those with income up to Rs 5 lakh? No taxpayer can avail this  (Click for detail)


III.  Tenders Info. : 
  1. Lala Ram Sarup Inst. of Tuberculosis & Respiratory Dieseases
    Expression of Interest for C A for Preparation, Finalization & Audit
    New Delhi

    (Click for detail)


Key of Success :

"To smile without condition,
to talk without intention,
to give without reason and
to care without expectation
is the beauty of a true relation!


Thanks for your valuable time


"Voice of CA"  

CA. Sanjay Kumar Agarwal
Founder - Voice of CA 
Mob : 9811080342,      
CA. Sidharth Jain, Co-Moderator 
CA. Mukesh K Bansal, Co-Moderator-FEMA 

CA. Avinash Gupta, Co-Moderator-International Taxation 


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